Microsoft does indeed have their own Windows Phone in the works

Yesterday we wrote a fairly lengthy article about a new rumor of a Microsoft Windows Phone. The source came via China Times and we were hesitant to believe the claim—after all, no evidence or sources were mentioned.

Still, we pointed out that Microsoft is a large company with a ton of resources. If they wanted to do a phone, they most certainly could pull it off and the Surface Tablets only reinforce the notion that they can do this in secret.

So what has changed? Information has come forward to Windows Phone Central that demonstrates Microsoft does have their own Windows Phone hardware in the works; in fact, we’ve heard it already exists and is in testing. The source(s) are known to us and not anonymous, though for obvious reasons we must keep them off the record.

Details about what it looks like, hardware specifications, launch times, etc. have not been shared with us by the person(s) who have provided the information. The only thing we do know is when compared to current WP8 hardware it’s something unique.

Something awry between Microsoft and Nokia?

Why is Microsoft doing this?

One was the Google-Nexus route of selling their own hardware, direct to customers with no carrier interference. Sold through Microsoft Store, the devices could fill in a niche for Microsoft while their OEM partners can have the carriers. This would allow Microsoft to have their own "vision" of Windows Phone and a way to update the devices directly, with no one compromising their vision. In addition, their OEMs will mostly be kept "happy" since unlocked phones are not the crux of their business model.

The other reason we raised was Microsoft maybe wanted a contingency plan—in case the Windows Phone 8 launch doesn’t go well and the currently announced devices don’t catch on. Nokia could be in trouble financially and Microsoft would need another dedicated hardware partner.

A third possibility we've been hearing about for a weeks is tougher to swallow. We have heard rumblings about Nokia focusing too much on the “Lumia” brand as opposed to Windows Phone, which may explain why Microsoft put HTC on a pedestal with the “signature” Windows Phone banter a few weeks ago in New York City.

Interestingly, BGR.com just ran a story where they too are confirming a Microsoft Windows Phone. They note they learned about it weeks ago and our sources appear to be different from theirs (our info came this morning). They do note that it is a “high end” phone but it will not launch with the 1st wave of Windows Phone 8 devices.

Microsoft Studio C

Microsoft on Lockdown

In an interesting and perhaps related story, the reputable site GeekWire is reporting that areas of the Microsoft campus have substantially beefed up security in recent weeks:

“The company notified employees this week that it will be implementing new physical security measures — limiting employee access at four key Xbox and Interactive Entertainment Business buildings to ensure confidentiality of upcoming products.”

“The changes will affect Microsoft Studios A, B, C, and D, on the west side of state Route 520, starting early next month with Studio A and rolling out to the other buildings by the end of the month.”

GeekWire is rightly claiming this is most likely related to next-gen Xbox console testing, but from our own knowledge Microsoft has some Windows Phone "things" happening in Building C too.

With a Microsoft branded Windows Phone entering into late stages of development, it would make sense that much like the Surface tablets, they would begin to implement tighter security around campus.

This actually incourages me to buy more shares. At this point, the more excitement around Windows Phone the better. Microsoft and the OEMs are not just competing with themselves but with 2-3 other strong platforms. They first need to gain significant market share before they worry about their piece of the pie within the Windows Phone ecosystem.
The Microsoft phone might have a "vaporMag" body but lack Pureview. Personally I'll take a great camera over anything else.

Remember that Microsoft is paying Nokia to use WP. They may want to use that $1B developing their own phone rather than investing in a company that may not come back. In which case your shares would be worthless. And as a former Palm shareholder, I know the feeling.

Lol. Everyone assumes Nokia got surprised with this info like we just did. Like they just read about it on bgr. I guarantee Nokia (and HTC and Samsung) were fully aware of Microsoft's plans. Microsoft allowed them to debut first. But I'm sure there was an agreement someone stating that they'll join the party in 2013.

I can't beleive people don't realise this. Though we don't know for sure that Microsoft informed their OEMs of this move, there is a very good chance they did. People should stop assuming they know what Nokia/HTC/Samsung have been told.

Just like with Surface tablet Acer didn't know anything, I'd not be surprised if Samsung out of the 3 companies was kept in the dark. The reasoning is simple - I don't think MS likes how Samy approaches WP phone designes and would not be too disapointed if they stop making WP phones, unless they make 180 degree turn similar to HTC.

It would take Microsoft 3 - 5 years to make a phone as good as the Lumia 920 plus Nokia already has better ones in the works. I really find this hard to believe. Why would Microsoft alienate Nokia--they are the best thing that ever happened to Windows Phone and are single-handedly giving WP a chance of viability.

I shifted to WP from Android because I fell in love with the OS. I'll buy the Nokia Lumia 920 this time because it best fits my needs in a WP8 device. But it could also be a different brand next time around, as long as the OS is WP!

I'm excited to see what it's all about. I am pretty set on getting the 8X on T-Mobile US but I might have to switch to this depending on what it is. It would be sweet to have a surface tablet and a similarly designed phone.

So, HTC is the official face of Windows Phone and now Microsoft is making their own high-end phone? What happened to Nokia? How did they go from "THE Windows Phone to get" to "just another OEM" so quickly?

Truth is, there still isn't a phone or an OEM that comes close to what Nokia offers. Microsoft knows this (hence, the inking of multi-billion dollar deals with Nokia) and in all probability, discussed this all with Nokia. HTC still isn't the official face of WP - all signature means is that Microsoft had a hand to play in the design of their phones. In short, this is Microsoft playing cozy with HTC to get them on board.
And that phone being made by Microsoft is a) unconfirmed and b) only sold in Microsoft stores. That will have little to no impact on Nokia or HTC (I'm not shelling out $500 when I'm already getting better hardware for ~$150) and for all you know, Nokia might be the one actually manufacturing this device.
I love it when everyone starts throwing a tantrum over a rumor and tries to theorize about how multi-billion dollar companies might be 'feeling' like. Ya, good going!

Yes, HTC is the official face of WP8. That's not to say that Nokia doesn't have some great hardware too. I'm pretty impressed with that camera.

Steve Ballmer: "This just is the Windows Phone 8X and this is the Windows Phone 8S. We think this approach will help us tell our story very crisply and clearly to consumers. You want a Windows Phone, sure, 8X, 8S."

I don't understand. Your (we're)the end user(s). Does it really matter whom the device comes from? Nokia, Samsung, Sony, HTC or Hp. They are tools for MS success. The important thing is the OS still available. Whatever MS has to do to keep it alive and competitive is fine with me.

do you think Apple is going to stop with Samsungs Android offerings? Or do you think they will go after others as well? When they do and win, I guess you will be using a Nokia symbia device if they pull out of wp

Shouldn't you be happy about having more options?
Also, what you're suggesting Nokia do is exactly what you're getting mad about in this situation. Google has its own brand (Nexus), and there are several other manufacturers of Android phones. How is that different from the situation that's upsetting you here - Microsoft possibly coming out with its own phone along with other manufacturers having their own Windows phones? If anything, Nokia probably has the best chance with the WP platform because they're by far the most popular WP manufacturer.
Besides, the article states that the Microsoft phones will only be sold at their stores and not through carriers. A lot of people typically purchase phones when they're eligible for upgrades and can get phones at a discount through their carrier. So it shouldn't cause any conflict.

Welcome to the real world: every company worth their weight in gold has and will continue to screw people or other companies over at some point, so get used to it as I guarantee you that any other phone you buy will have been the product of corporate screwing of some sort.

When HTC and Nokia announced their new WP8 devices, I was so excited to switch from Android. I've been having some doubts recently but was still pretty sure I was going to make the jump. This news definitely kills that idea though. I want to see what Microsoft releases.

who exactly? The 2000 people reading this? This rumor will not even make it to the mainstream news. You'd wait for an unanounced phone? Did you wait for the iPad mini in 2011?
Sadly, i want Nokia to come back on their feed and this is not helping even though i'd love a Surface Phone. Damn. Still getting the Lumia 920 though.

I don't wait for unannounced phones. This is completely different though since it will be made by the people who make the OS too. I would expect the Microsoft phone to receive the best support, fastest updates, and great apps. Other OEMs can't compare in this regard.

I'll be postponing my switch to Windows Phone until I see what Microsoft has up their sleeve. I was going to get a 920 or 8X, but it seems the best course of action now is to wait and see.

"I don't wait for unannounced phones."
But now you're saying you'll wait to see what "unannounced" so called phone MS will release. Which is it? You don't wait for unannounced phones or you're waiting for an unannounced phone MS will release sometime in the future? I'm so confused. :)

No one knows when the Surface phone will be released, but I'd think it would be much sooner than that. It's true that it may not be as good as the currently announced devices, but if I'm making the jump from Android to WP8 I want to be sure I get the best product. The 920 and 8X are great choices, but I'm going to hang out on the sidelines for a little bit now.

First of all welcome to the WP land. Now, your desire to wait is understandable, but it's like buying a new computer - a better one will arrive right after you pay for the one you choose. So, look at what will be available soon, pick one and enjoy. I know as I've been enjoying my Titan for almost a year.

Fastest updates? WP isn't Android. WP phones get updates a lot faster than Android phones. Even looking at the 7.8/8 fiasco, that shows that MS is committed to bringing whatever updates they can to older phones which is a stark contrast to the Android OEM practice of dumping product updates once they stop selling that particular model.
Best support? No doubt MS will give Surface Phones top notch support, but Nokia has been supporting their WP phones very well, and who knows, maybe HTC might step up their game as they seem to be taking WP phones seriously now as well.
Great apps? I don't see MS releasing exclusive apps like the OEMs have. People bash Nokia because they get exclusive content, not realizing that if it wasn't for Nokia those companies would probably not have come out with a WP app. Whatever apps MS releases, they release for all WP phones (as it's in their best interest).
Wait and see? Newsflash - there will ALWAYS be a better phone coming out in the near future. If you wait for the Surface Phone, there will be rumours of an even better Nokia/HTC/Samsung/whatever coming in out in a month or two.
I gladly bought my Lumia 710 knowing full well that it would not be upgraded to WP8. I needed a phone at that time and I've never regretted it.

You make some good points and I agree with most of your post. It's true that there is always something better around the corner, but I see this specific example a bit differently since it's Microsoft building the phone and the OS. I want to see what comes of this potentially awesome combination. I'm also not in a rush to upgrade my phones; I love my Galaxy Nexus. Waiting a bit longer to see what Microsoft does isn't a problem.

Although it is true that some Android devices get dumped and unsupported, most are low end or mid ranged devices. If it is high end like the GS2 that is two years old now, it is still getting Jelly Bean.
I also want to correct a very sad and misguided way of thinking here. Android updates are not slow, most Android phones that get updated get them in about a year or earlier, which is EXACTLY the same time frame as Apple and Windows or anyone else.
Yes they get them later than Google pumps them out but Google releases a new OS anytime they want usually have more than one update a year. I feel that it is pretty unfair for consumers to expect Android OEMs to judge them to the same standards as Apple. Too many differences that condumers have entitlement issues seem to ignore.

I will wait it out. The longer I wait the closer my contract matures and more $ stays in my wallet for the latest greatest WP. So once WP8 comes out I'll find that 900 to hold me over and take the 60$ or 70$ for my Focus S.

I want WP8 device NOW! I'm not waiting for MS to come out with their phone! I have everything I need in a phone in the already revealed Nokia, HTC, Samsung WP8 phones (well, maybe not so much Samsung). I also want a Surface Pro but I'm not waiting - I'll buy a very good W8 hybrid that I want/need this Nov.

Look, if you know something then email us with the info and we'll keep you off the record. But acting like you "know" by saying you have secrets is not constructive. Step up and play, but don't fiddle in comments.

Ugh. Are you five? Slamming the word "Owned" on the side of a word just doesn't work. I'm not entirely sure what you're expecting to get by saying such an immature comment anyway. A kudos from the site admin or something?

Maybe you should have asked yesterday if there was legitmacy in my comment? Like you said I have no credibility, so would have dismissed me anyways. Don't worry, I won't fiddle anymore. You can breath easy now.

You didn't give any details. If you didn't want to post the details in a public board, you should have done as he said and send them an email describing where you got your information. Otherwise, you don't have any credibility.

Seriously Daniel, why email you? You don't even publish that info anyway if it is against your agenda. I just remember you about the Windows Phone 7.8 story and the fact that all old WP devices. won't run WP8. You had that story at least about 1.5 weeks before the MS announcement. You didn't publish anything. Same with the MS windows division vs. WP division. Haven't read a story about that on this site yet... So why bother to email you again? In the comments the actual stories get at least read by people visiting the site.

I think this statement is ridiculous. Because Microsoft makes their own device, Nokia should go with Jolla, or worse, Android? Nokia isn't the sole oem for WP in case you didn't notice. It would be naive to think that Nokia (or the other oems) weren't aware of Microsoft's plan to make their own device.

Microsoft needs Nokia, if for nothing else but for Navteq; and no way can Microsoft 'out innovate' Nokia on hardware. Nokia has nothing to be concerned about - Lumia will still be synonomous with WP even after Microsoft releases this device.

plus nokia has alot of reach worldwide, which MS doesnt have actually thats why ZUNE failed not that it was a bad product or something but it was limited to a few regions.

Even for WP, when nokia came onboard only then was WP launched in regions like india, china and still many software features of WP are not available in those countries like artist on lockscreen, local scout, music marketplace, etc.

and i have the same feeling about the surface PC let alone the surface phone that these products wont launch in countries other than US, Canada n some countries in Europe

You miss the point, with MS in the game, just like the Surface tablets there is even less of a market for Nokia and as WP is their sole smartphone OS it will be smart to look at alternatives. HTC and Samsung, even Huawei have android to fall back on, if Nokia doesnt make it with WP they are gone. Having a competitive OS like android as a secondary option would be better than nothing.

And I would argue that it would make no sense for them to sign on exclusively with WP if they knew MS was going to enter the market as well, if this comes to light the first thing that would be hit would be their stock price, then pressure on Elop to be replaced as the perception would be that Nokia could not compete with MS, HTC, Samsung and any other WP OEM. If they knew this and signed on anyway they only have themselves to blame because I cant see this being in any way good news for Nokia as a company.

You're assuming WP marketshare stays the same. If it does, than MS entering the market will reduce Nokia sales. If the devices from Nokia, HTC and MS make wp more desirable and increase the apps in the ecosystem, then the marketshare will increase and all teh wp oem will do better. I know there are a lot of if's in this statement, but that is the theory.

To be honest I don't see the problem at all. Their OEM partners seems to be on a yearly or maybe 9 month release schedule, and if Microsoft launches their phone in the middle of this cycle it won't really be an issue. The amount people that will know about this phone in advance and are willing to wait for it isn't really that big. The only phone that has that power is the Iphone. I would also love a phone that differentiates from the Nokia/HTC design to attract a wider audience, not to mention I would love it if it was made from something else then plastic.

as long as they take the nexus route and sell unlocked, unsubsidised phones through their own retail channel, it won't really impact most OEM's in the US at least, as the primary channel for the average consumer to buy a phone is the through the carrier with a contract. this would only be desirable to a small portion of the market.

look at the gnex, if there was no verizon variant you could get on contract, it probably would have sold about as well as the nexus one did.

you also don't see OEM's up in arms with google for making the nexus devices, so this will probably fare the same, aside from the tech blogs screaming about the sky falling because microsoft is making hardware. (not this blog, but you know the ones. :P)

It would be so great if MS somehow upset the apple cart and set off a chain reaction where people would start to buy phones unsubsidized from carriers. Enough people could probably demand action from government that would pressure carriers to discount service for people who provide their own phones.

I think Microsoft will force OEMs to make better phone for less money. MS can take a loss in one area to allow their phone unlocked to sell for 199.00 US. I just checked to see if i could upgrade to a L810 on T-Mobile and they want 300+ bucks plus a 2 year extension. Thats too damb much. I can see 150.00 but 300 no way....If i can get a MS built phone for 199 unlocked I can just put in my existing sim card and not change my plan....

If this story is true, Microsoft is only selling their phones at their stores (which I also assume is full priced). A lot of people get their phones through carriers by taking advantage of their discounts. So, the Microsoft phones are only targetted towards people who plan on paying full price for the phone. The majority of the users (myself included) will still end up purchasing the subsidized Nokia, HTC or Samsung phones. So, this may not be a bad thing after all.
Also, going to Android is no different. Google has its own Nexus brand and there are other manufacturers to contend with. If anything else, Nokia being arguably the most popular Windows phone, is better off staying committed to the WP platform. From the way I see it, there's no back-stabbing being done here.

Yeah but Motorola phones still have "Motorola" stamped on them. What I mean by that is how would Microsoft differentiate their phone from the rest of the OEMs if Microsoft's phone is made by Nokia, for example?

There are many other Countries that are not under the carriers racket; a lot of people outside the US buy unlocked phones thereofre there definetely is a market. If MS will really get in the game is another story though.

that's because google doesn't make any hardware (aside from the nexus q) in house, so whomever makes their nexus product for them, be is HTC, samsung, or asus is allowed (and rightly so) to place their branding on the device.

microsoft, with the surface tablet and presumably with the surface phone is building a new product in house, so who's brand would you like them to place on the back?

I guess you don't remember one of the higher UPS in Nokia saying they have a contingency plan (Android possibly) if WP didn't workout. Why shouldn't MS do something to spark more interest in WP. Once it peaks interest, customers will look at and buy one of the many WP phones available

What of theirs is 3x the price? The air is about the same price as other ultrabooks and beats all of them as windows pcs. Their phone is $200 like every other phone. Can you name something that's technically inferior about them, instead sounding like a mindless fanboy.

haha... you just said what i've thought for a while - that Mac's run Windows beautifully... tried to find an oem Windows machine that had the specific componentry necessary for sound production and could NOT find one so instead dipped my toes in with a MBP. Nice machine - runs Windows fine... you get used to the keyboard after a while.

First off the spec's on a MBP are way lower than a comparable equiped Ultra. Second the $200 is for 16GB, in most other phones you get more or can add an SD. Technically inferior? Let's start with the glass on the iPhones. My clients have broken more iPhone glass than all the other phones combined. I have clients with all sorts of phones and the iPhone is not in the majority. Then there is the aliminium case that dents. My plastice (yes plastic) case is virtually uncrackable and will NOT dent. Now lets delve in to the price issue. A totally tricked PC Desktop/Workstation is about $2G's, a comparable Mac Pro is about $3500/$4000, not 3x but 2x. Laptops are about 2x as well. Hey, don't take this the wrong way, I have plenty of Mac's/AppleTV/iPxds areound but I know I am paying a premium to be an appleoid.

I actually agree with you, but the iPhone is 100$ more expensive than the Lumia 920 (100$) here in Canada. Nokia needs to undercut Apple at this point, whereas Apple can enjoy a higher profit margin, which means it's more expensive for what you get.

Well the obviously being technically inferior doesn't matter. It's about the experience baby, not the specs. I'm happy for Apple and their success, they found a solid strategy and worked it. Now Nokia has to find theirs.

Why wouldn't you have Apple envy? Their profit margins are insane. You should be rooting for competition. If there is enough competition, Apple will have to reduce their margins and you will be able to buy whichever phone you prefer for less money.

No, he is using the relationship of Lexus and Toyota as a comparison to Nokia and Microsoft. Although MS and Nokia are two separate companies, they both use the same OS to make a phone, just like Toyota and Lexus use the same technology/bodies to make cars. Nokia is the more classier version of Windows Phones, while Microsoft will make more affordable yet equally (in some cases) capable.

We'll see. When I was in sales at at&t I stopped selling Lumias altogether right at the end. Too many problems with the phone that aggravated ordinary customers. Data still dropping even after the sotware fix was issued, battery running down too quickly, random reboots...and keep in mind I was the Windows Phone Guy. It really tarnished the 900's image in my eyes. Plus it didn't feel premium like my 800. No curved glass, and the somewhat sharp edge that it had where the glass met the polycarbonate was uncomfortable when you held the phone to your ear. Glad the 920 will be here soon though.

Now the 800...that was a solid phone. Shame it had a Pentile screen and won't get WP8.

no America is bankrupted as they are writing bogus checks and buying with bogus money, Nokia got some cash and every day is making deals with their location services, I wouldn’t be surprised if even apple came aboard, the only reason nokia looks bad is because of American media, and American arrogance, America thinking that if a phone doesn’t sell here then it don’t count, that’s also the reason more and more movies are being released overseas first. We’re becoming irrelevant because of our media, and weak economy. Nokia has the best phone and apple the worst but it doesn’t matter but good for nokia people overseas don’t listen to or buy what our media tell them to they buy for a reason that we long forgot, cause its good, maybe even the best.

It's citizens are "indentured servants" because they are under educated and can't spell words like "indentured" and "collateral" correctly or are too lazy to use a spellchecker as you have so adeptly demonstrated.

Yes it is. Maybe Microsoft is doing this so all carriers can have a top notch phone. Microsoft's phones might have all frequencies and come in GSM/CDMA Flavor. If Microsoft sold these phones un subsidized everyone on every carrier could have access to W8 and updates immediately as there released.

I had pretty much convinced myself to wait until spring for a new Windows Phone even though i can upgrade in November. With this news, I'm definitely waiting, but not TOO long. This phone might take a while. I guess I'll wait until MWC 2013 in February and then make a decision.

I don't know if there's indeed going to be a Surface Phone or what. What I do think is that Microsoft have definitely built a phone. Why wouldn't you? If you needed a contingency to bump awareness of Windows Phones, why not build a protoype at the very least before the time comes where you might need something to really kick up the excellent, but still not well-known and widely-used mobile operating system. I'd be VERY interested in having a look at a WP8 device from Microsoft. However I do question how well they could compete with Nokia. Nokia's Lumia 920 is excellent and offers such a superb camera and cool extra features that Microsoft would really have a huge friendly competition with their only exclusive OEM. Not to say Microsoft couldn't make it happen, but boy do they need to impress if they do drop a phone in 2013.
There is a special announcement coming on the 29th of January. Maybe that has something to do with this? Speculation is both fun and terrible. I won't totally buy into rumors of this device seeing a release until Microsoft say it themselves.